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Committing your assets to MOSDEX’s arbitrage protocol earns you returns in USDT while you go almost nothing. Income earned on MOSDEX is relative to the amount stakes and the bot’s profitability over the staking duration.
The basic model of operation of MOSDEX passive income technology shares a striking resemblance with single-side staking.
Like the arbitrage protocol, single-side staking also rewards you for locking your assets to a staking pool. However, the underlying technologies and management are markedly different.
Here’s how they differ
Yield generation
Rewards earned on MOSDEX are generated from the arbitrage trading bot. the arbitrage trading bot screens trading prices of assets across different exchanges for an arbitrage opportunity. It detects the difference between the prices of the asset on different trading platforms and swiftly trades the arbitrage by buying on the cheaper exchange and selling on the costlier exchange. It is built to seamlessly traverse between exchanges and employs profit management strategies to ensure that every trade is completed with a net profit.
In contrast, staking rewards are generated from the supply swell. Decentralized applications that offer passive income through single-side staking programs often set aside a percentage of the total token supply for incentivizing stakers. The staking program will run as long as the allocated funds permit.
Yield determination
The overall yield distributed to stakers on MOSDEX is a factor of how much the bot has been able to make in that period. This is calculated and presented as the bot’s profitability. Bot profitability is the average trade success of the arbitrage trading bot over a period of 24 hours. This, in turn, is calculated by taking the percentage of the total trades that returned a profit against the total trade. The average daily reward for stakers will fluctuate relative to how profitable the bot has been for this duration.
In contrast, the yield delivered to single-side stakers in the normal scenario is presented in the APY or APR of the staking pool. The APR is affected by factors such as the number of stakers on the pool and the portion of the total supply allocated to staking rewards. Rewards in single-side staking programs usually see a constant decline as more people join and more tokens are issued from the pool.
Sustainability
Single-side staking programs are maintained from a pool of tokens, set aside. The program will continue to run as long as the allocated tokens are available or as long as they are healthy for the project. Cryptocurrency projects that run single-side staking programs often discontinue them or lower the earnings drastically to prevent a supply shock. The profitability of Single-side staking programs will, as a result, fluctuate or run just as these factors permit.
On the other hand, passive income earned on MOSDEX is generated from trade profits made by the arbitrage bot. As long as the bot runs and generates profits, stakers will receive passive rewards as long as they have their funds staked on the platform. Payouts are made in USDT and BTC and not an allocated portion of a project’s smart contract token.
Fund management
MOSDEX brings in an atom of centralization. This is due to the fact that the staked funds are actually committed to the trading bot. the bot takes custody of the committed funds and used them to conduct trades on behalf of the contributors. Staked funds are held in a uniform wallet which the bot uses to execute trades. MOSDEX staking program is a proper economic strategy in which the pooled funds are used actively to chase profits through arbitrage trading powered by AI and Machine learning.
In comparison, this is different in the case of proper single-side staking. The staking contract is developed on the blockchain and designed to accept deposits and hold them on behalf of the staker according to the agreed staking terms. The funds are dormant as single-side staking programs are basically a tokenomics strategy used to curb the number of tokens in circulation.
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